Display Advertising’s Vicious Cycle.

The trend is undeniable – users are increasingly ignoring online display advertising, with response rates as low as 1%.  The response by industry is to jam as many ads on the screen as possible, such that a Facebook user sees 9 ads on a single page, leading some to say that things don’t look good for post-IPO Facebook.   A preview of a YouGov report covered on TechCrunch lays out the numbers.  Throw in the increasing use of mobile devices and you have a risky and unsustainable situation.  The options are either to increase ad placements or  increase click rates, with the net result of increasing the amount of money earned per click.  More ads are not the way forward.

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